International Business Chapter 1-4

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Chapter 01 Globalization and International Linkages

1. To qualify as a multinational corporation, a firm must meet all of the following criteria except: A. Operations in more than one country
B. International sales
C. A nationality mix of managers and owners
D. Sales of at least one million dollars per year
2. Antiglobalization activists:
A. Contend that even within the developing world, it is protectionist policies, not trade and investment liberalization, that result in environmental and social damage B. Believe globalization will force higher-polluting countries such as China and Russia into an integrated global community that takes responsible measures to protect the environment C. Assert that if corporations are free to locate anywhere in the world, the world's poorest countries will relax or eliminate environmental standards and social services in order to attract first-world investment and the jobs and wealth that come with it D. Believe that industrialization will create wealth that will enable new industries to employ more modern, environmentally friendly technology 3. A method which adjusts GDP to account for different prices in countries is called: A. Cumulative distribution function

B. Nominal GDP
C. Current currency exchange rate
D. Purchasing power parity
4. The following are characteristics of the nature of India's current relationship with multinational business except: A. In recent years the number of multinational businesses investing in India have been sharply declining B. There has been a dramatic turnaround in the policies of India's government, which has become more pro international business C. In an effort to attract more international business, India's government has been willing to reduce some of its bureaucratic red tape D. It is becoming easier for multinational to move forward with investments in India 5. The Goldman Sachs global economics team:

A. Estimates that Chile will occupy a dominant role in the global economic system and will surpass the United States in output by 2035 B. Reports that the economic potential of Brazil, Russia, India and China is such that they may become among the four most dominant economies by the year 2050 C. Estimates that the BRIC economies' share of world growth could rise from 40 percent in 2000 to more than 70 percent in 2025 D. Reports that Germany, followed by India a decade later, will overtake the United States as the world's largest car market

6. Which of the following statements is false with regard to a mixed economy? A. Regulations concerning minimum wage standards, social security, environmental protection and the advancement of civil rights may raise the standard of living B. Ownership of organizations seen as imperative to the nation may be transferred to the state to subsidize costs and allow the firm to flourish C. Regulations concerning minimum wage standards, social security, environmental protection and the advancement of civil rights ensure that those who are elderly, sick or have limited skills are taken care of D. Businesses in this model are owned by the state to ensure that investments and practices are done in the best interest of the nation despite the often opposing outcomes

7. A major development in South America is:
A. Is the implementation of the single currency and the regional central bank B. The growth of inter-country trade, spurred on by the progress toward free-market policies C. Is the privatization of traditionally nationalized industries D. Is the elimination of all trade barriers among member countries 8. The former communist countries that have become most visible in the international arena include: A. Romania, Poland and Bulgaria

B. Czech Republic, Bulgaria and Poland
C. Hungary, Romania and Albania
D. Poland, Hungary and the Czech Republic

9. Which of the following statements is not true of Japan? A. During the 1970s and 1980s, Japan's economic success had been without...
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